The DoJ has announced that Pfizer will pay $785 million to settle False Claims Act violations of their subsidiary company Wyeth. Through a period from 2001 to 2006, Wyeth failed to report discounts to Medicaid that they were offering hospitals for two of their stomach acid reducing drugs, Protonix IV and Protonix Oral. This led to Medicaid overpaying for these drugs by scores millions of dollars, to the detriment of the program and taxpayers, and to hospitals routinely switching patients from a prescribed drug to another similar drug, sometime to the detriment of patient health.
Attorney General Luther Strange (R) believes that empowering Alabama with its own False Claims Act would be a substantial benefit for the struggling Medicaid program, and for the state at large.
This Week in Fraud is a peek into the world of whistleblowing and incentivized integrity programs. Each week we highlight important case settlements, industry developments, and general points of interest. Take a moment and see what is happening this week in fraud.
Late and secretive language was sneaked into the Wisconsin state budget that would kill the Wisconsin False Claims Act.
Ranbaxy has reserved $40 million to settle a Texas False Claims Act case alleging Medicaid best price violations. A bigger national case may be coming. Ranbaxy was nailed for $500 million under the FCA in 2013, and pled guilty to numerous felony charges.
Extendicare Health Services Inc. and subsidiary Progressive Step Corporation have agreed to pay $38 million to the United States and eight states to resolve a whistleblower-initiated case alleging Extendicare billed Medicare and Medicaid for nursing services that were so substandard and deficient that they were effectively worthless. The case was brought in April of 2010 by Tracy Lovvorn, a former Area Director of Rehabilitation at Progressive Step Corporation, a division of Extendicare.
Largest single drug case under the FCA